UTair completed the restructuring of debt to 160 billion rubles

Moscow. December 29. The airline “UTair” have completed the restructuring of debt totaling more than 160 billion rubles, said the head of the investment banking operations of the Raiffeisenbank Oleg Gordienko.

“Yesterday the company “UTair” have completed the restructuring of debt totaling more than 160 billion rubles. Raiffeisenbank acted as a consultant on the deal, the details of which will be revealed later in the official release,” he said.

As previously reported, in September the Arbitration court of Khanty-Mansi Autonomous region satisfied the claim of CJSC “Pallada asset management”, which is the Trustee of pension funds of NPF “the Mechel-Fund”, “UTair” and its subsidiary LLC “UTair-Finance”. The plaintiff demanded to recover from the defendants the nominal value of exchange bonds of OOO “UTair-Finance” and the coupon income in the amount of 177,903 million.

“UTair-Finance” in December of 2014 and in 2015 made a number of technical defaults in the payment of the coupon income on bonds. In January, the airline “UTair” sent to bondholders 5-series and the exchange bonds of series BO-06 – BO-13 and BO-16 preliminary restructuring terms. Consultant on a comprehensive restructuring of the debt portfolio of the company was assigned to Raiffeisenbank.

Approved by securities holders plan of debt restructuring involved the exchange of existing bonds for two new issues of securities, issued by LLC “Finans-Avia” (“daughter” of “UTair”), with payment of compensation. In December, the Bank of Russia registered the report on results of issue of bonds of “Finans-Avia” 1-2 series nominal volume of 10 billion rubles each.

The airline “UTair” was in a difficult financial position amid falling demand for air travel. In mid-summer 2014, the carrier announced the launch of a programme of cost reduction, which includes reducing administrative staff, optimizing the route network, reducing the time of passenger service.